Am I saving enough for retirement?
Ah, the million-dollar question. Lets look at a specific example, shall we? Say you have a $50,000 per year salary and $160,000 in your RRSP at around age 60 and plan to contribute another $10,000 a year for 10 years. Is this enough to retire at age 70 and have enough to last until you’re 100? Well the answer is: it depends. You need to consider inflation and factor in CPP payouts, too.
How can I boost my retirement income?
While avoiding a high tax bill? Well depending on your age, it makes sense to delay receiving OAS and CPP until as late as age 70. That’ll let you pick away at your RRSP without racking up a lot of tax payable. A financial plan is key, in this situation.
Should I have life insurance in retirement?
If you’re financially secure, this becomes an estate planning, tax and investment discussion. Continuing to pay into a policy “because you will die eventually is like wearing a winter jacket in the summer because it will snow eventually.”
How can I pay less tax when I finally draw down my RRSP?
Flipping the switch from accumulation to decumulation can be tricky. Should look at how to pay the least amount of tax possible when you have spousal RRSPs.
Should I use my RRSP to pay off debt in retirement?
Many retirees worry about pre-retirement debt in their golden years. Taking out money from an RRSP to clear your debts might sound like a good idea but there are plenty of considerations to take into account, like immediate tax consequence and whether tapping into retirement funds will leave you wanting in your golden years.
Should I take a lump sum or monthly pension?
There are pros and cons of each option. For instance, a lifetime monthly pension is usually guaranteed and removes the stress of worrying about market swings. Meanwhile, a lump sum could leave you with money to pass on in an inheritance.
Article credit: MoneySense
Photo credit: Rogers Media